The artificial intelligence revolution has caused a growth surge for the technology's enablers, most of which reside in the semiconductor sector . In fact, the stock movements for these companies have been so strong that many now trade at very, very high stock prices, setting these AI beneficiaries up for a potential stock split. Stock splits don't create or destroy any value on their own.
After all, if a company has twice as many shares but half the stock price, the company's total market cap remains the same. However, stock splits can help certain people afford shares if they don't have a broker that allows fractional share buying . Moreover, splits can increase a stock's liquidity, which can help lower-bid-ask spreads for trading purposes, and therefore attract larger funds to a stock.
Therefore, even though the following five stocks have already had very strong runs, a split could potentially drive these AI winners to even further upside. 1. Nvidia First and most obvious on the list is AI GPU leader Nvidia ( NVDA 2.
49% ) . Not only is Nvidia currently leading the entire AI revolution with its best-in-class AI chips and software ecosystem, but it also has a history of stock splits. While Nvidia split its stock a few times in the early 2000s, its most recent was a 4-for-1 split in July 2021.
Of course, with the stock having quintupled since that split a mere three years ago and its share price reaching $944 as of this writing, it's not a stretch to the think the company may.